Bank of America is sticking with stocks like Apple and Nvidia heading into June. The bank has identified several companies that are strong ideas and have a lot of upside potential. Other stocks screened by CNBC Pro and rated Buy by Bank of America include National Vision Holdings, Toll Brothers, Citigroup and Dollar General. Toll Brothers Following its latest quarterly report, analyst Rav Jadrosic called Toll a “rare” beat and raise. Bank of America said homebuilders are firing on all cylinders despite the challenging macroeconomic environment. Jadrosic noted that “margins remain healthy/resilient…” The analyst said shareholders should be impressed, noting that demand, particularly for luxury homes, remains strong. “We maintain our buy rating. TOL remains our top pick given its regional/segment position, capital return and attractive valuation,” he said. The stock price has fallen 12% in the past three months. Dollar General and National Vision Holdings Bank of America says both retailers remain highly attractive. Analyst Robert Ormes said Dollar General has plenty of “momentum” as it continues to remodel its stores and partner with Uber and Instacart for delivery. The bank said it also expects gross profit margins to increase. Ohms also named eye care retailer National Vision Holdings as a top pick, saying investors should buy on the spur of the moment. “Potential catalysts for a valuation recovery include continued rise in average ticket prices supported by premiumization, store segmentation, and meta AI glasses,” he wrote. Dollar General’s stock price has fallen for three straight months, with the stock expected to fall 17% in 2025. National Vision fell 29% in May. Citigroup is a top pick Citigroup is up 67% in the past 12 months and has more room to maneuver, Bank of America said after CEO Jane Fraser’s investor day earlier this month, which included news of approval for a $30 billion stock buyback. Analysts led by Ebrahim Poonawalla wrote: “The camaraderie across the leadership team is outstanding, demonstrating the alignment and energy behind the execution.” Poonawalla raised his 12-month price target to $170 per share from $150 and said investors would be wise to buy the stock now. “While it is too early to declare victory, we believe that shareholders will be positioned to realize the franchise’s full potential with the rebuilt ‘engine,'” he said. Additionally, Citi is incorporating artificial intelligence into its business. “Citi appears to be ahead of AI, working with leaders like Anthropic and Google,” Poonawalla said. Nvidia “Our positive view of Nvidia is based on the company’s unique full-stack and leadership in artificial intelligence silicon, hardware, and software. The company’s strong balance sheet and free cash flow returns further enable it to invest in its ecosystem and strengthen shareholder returns.” Apple “Our buy rating on Apple is driven by 1) the strong iPhone expected in the F25 and F26, driven by the need for the latest hardware to enable Gen AI capabilities; upgrade cycles, 2) higher growth in service revenue, 3) increased profits due to increased proprietary silicon, 4) recurring capital returns, 5) AI capabilities that can drive increased institutional ownership, and 6) “The camaraderie across the management team was outstanding and showed there was alignment and energy behind the execution…Although it is too early to declare victory, shareholders are confident that the ‘engine’ has been rebuilt in this franc.” We believe we’re on the brink of realizing the full potential of CHIZ…Citi appears to be leading the way on AI, working with leaders such as Anthropic and Google. John Holdings: DG trades at 13.5x P/E despite store renovation momentum with Uber/CART and SKU deliveries in new store formats. Rationalization should lift GM… E after Q1 earnings The drop in YE pushed valuations to around 7x 2027E EV/EBITDA, near historic lows. Potential catalysts for valuation recovery include continued rise in average ticket, supported by premiumization, and store segmentation and meta. AI glasses. ” Toll Brothers “TOL: Rare upturn in a challenging macro environment… Earnings remain healthy and resilient with Q2 (gross margin) beating expectations by 26.2%, but mix is expected to come under pressure in Q3 before improving in Q4… We maintain our Buy rating. TOL remains a top pick given its regional/segment positioning, capital returns and attractive valuation.”
